For Tax Purposes, There Is No Original Issue Discount on a Bond

question 126

True/False

For tax purposes, there is no original issue discount on a bond unless the bond is issued for less than its face value and the difference between the face value and the bond issue price is at least one-fourth of 1 percent of the redemption price at maturity multiplied by the number of years to maturity.

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Company Expense

A financial cost incurred in the course of business operations.

Rewards

Benefits, compensation, or acknowledgment provided to someone for their work, achievements, or behavior.

Punishments

The imposition of a penalty as retribution for an offense or undesirable behavior.

Adults

Individuals who have reached the age of maturity, usually considered to be 18 or older, and are recognized as fully developed persons both physically and mentally.